Info
Foto sezione
Logo Bocconi

Eventi del

4 2017 12:45 - 14:00
Meeting room 4.E4.SR03  Via Roentgen, 1

Dynamic Managerial Bundling Strategies Over the Product Lifecycle


SUMAN BASUROY, The University of Texas at San Antonio,


This study examines the use of bundling as a dynamic marketing strategy over the product lifecycle. Specifically, this paper addresses two important strategic marketing issues: the factors that influence (1) bundle introduction and (2) bundle market performance. We examine our research questions using monthly data from the U.S. home video game industry where we observe console/game bundles. First, we find that hardware makers are more likely to introduce new bundles early and late in the console lifecycle. However, bundle performance is maximized when bundles are introduced in the middle of the lifecycle. Second, hardware laggards are most likely to introduce bundles early in the lifecycle; however, industry leaders obtain relatively greater payoff for early bundle introductions. Third, software characteristics play an important part in bundle formation and introduction but hardware competitive position and lifecycle are more important in determining bundle performance. Fourth, using a matching model we find that bundle formation is a function of the interplay of hardware and software characteristics; results are valuable for managers evaluating bundling partners and academics investigating bundle formation.